Red Diesel and Residential Boaters
PRESS RELEASE issued by RBOA/DBA 14th September 2008
Red Diesel and Residential Boaters.
The Residential Boat Owners’ Association (RBOA) and DBA-The Barge Association are delighted to be able to confirm to residential boaters that their right to use red diesel for domestic purposes net of duty has been protected.
The negotiations with Her Majesty’s Revenue and Customs (HMRC), held initially jointly with a wide range of trade representatives and user groups, were concluded in separate meetings between HMRC, DBA and RBOA in Whitehall. These private discussions were made necessary because the relatively low numbers of residential boaters made their interests peripheral to those of the BMF and RYA membership.
At the first stakeholder meeting to discuss the HMRC proposal held on 30th April 2008 it became apparent that the interests of residential boaters were being ignored in the interest of a simple “one size fits all” solution. When the RBOA and DBA made it clear that this proposal was unacceptable and would, if not reconsidered, be challenged, HMRC, to their credit, agreed to hear detailed joint representations from both organisations.
There followed a series of meetings culminating with one at the Treasury on 12th August, also attended by the IWA, at which the formula now made public was agreed. There can be no doubt that the position of residential boaters would have been dire if HMRC had not accepted and reacted to the RBOA and DBA arguments.
For residential boaters the new regime is very simple. When they go to buy fuel for their boat they will sign a declaration stating the percentage of fuel intended to be used for propulsion, which will have duty and VAT charged on it. The balance will be for generating electricity, 230 volts and /or charging batteries, heating , cooking and light all of which are “allowable purposes” and are net of duty.
If the boater is based in a marina or on a mooring relatively close to the fuel supplier, it will be perfectly acceptable to make a 0% declaration because none of the fuel will be for propulsion. Boaters need to be very sure they can prove their residential status and that their boat is their principal or only residence. The RBOA and DBA suggest boaters keep a simple log detailing the movements of their boat and the running hours of their engine when it is for allowable purposes and they are not underway.
We will watch how the scheme is implemented and ask members and non members alike to let us know of any difficulties when they buy fuel after 1st November 2008.